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Share!The Treasury’s cash account continues to grow on the Fed’s H41, weekly consolidated balance sheet. It hit $422 billion at the end of November. That’s a firebomb waiting to be thrown at the market in the event of a near certainty of a dead ceiling impasse coming in March. That’s when the deal to suspend…

Share!Projections have dropped. They’re likely to be hit if support here breaks down. This report shows the new targets. Mining stocks still appear to be worth a nibble here based on hints this low in the precious metals stock indexes could hold. I have added a few more picks to the list. The volatility in…

Share!The market spent last week falling back to and testing the breakout area at 2185. If it holds, the bulls are still in charge and the market will have established a new short term uptrend channel. But if doesn’t hold, beware the abyss that lies beneath. Market Update Pro subscribers click here to download the complete…

Share!The TBAC has forecast $390 billion in cash at year end. With the 10 day average balance now at $400 billion it implies that there will be no additional cash pulled from the market for the remainder of the year. However, if the Obama Gang wants to go out with a bang, they could spend…

Share!The European banking collapse paused in October with a minor uptick in total deposits. In addition there was a massive, mysterious revision of the figures from earlier this year. But it doesn’t change the basic facts of how dangerous conditions there are for the US. Get The Wall Street Examiner delivered to your inbox every…

Share!The 13 week cycle projection of 1171 was reached. However, the 9-12 month and 6-7 week cycle projections now point to 1155-60. Here’s what needs to happen to signal a turn. The precious metals stock index also looks to be closer to a bottom. I have added a couple of bottom fishing stocks to our…

Share!The market broke through a wall of resistance in the 2185- 90 area. By the end of the week it was well clear of the August peak. A sharp uptrend channel has formed. That needs to be broken before the market can pullback. Here are the key levels to watch and the targets if they’re…

Share!The market hit a wall of resistance in the 2185- 90 area, at the top of the trading range. The trading range is very thin, and a downturn here could see the index quickly fall back to the bottom of the range. However… Market Update Pro subscribers click here to download the complete market update, including…

Share!Technical signals for gold prior to last week had been cautionary, so the selloff in the metal was not a complete surprise. However, the smash in gold stocks was a surprise, and did serious technical damage. Here’s what needs to happen to turn the outlook positive, or what to look for if certain levels do…

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The Fed Targets Unemployment With More Money for Banks- Video | The Real News

POLLIN: Well, there was a very important report statement from the Fed chairman, Ben Bernanke, last week, in which he said that the Fed is going to continue its essentially zero interest rate policies until—and he set specific targets—until unemployment falls below 6.5 percent or inflation rises above 2.5 percent.

Now, there’s a lot of extraordinary features to this statement. Number one, the fact that he’s setting a target at all is significant, and the fact that he set an employment target, because for a generation now, central bank policy has been centered around the idea that their job is to set an inflation target, and unemployment can go wherever it needs to go, but unemployment must be kept under control, so the fact that inflation must be kept under control. So the fact that Bernanke even announced an official employment target is significant, and it is a step away from the neoliberal framework of conducting monetary policy that prevailed prior to the recession.

Now, what about the target itself? Well, Bernanke also acknowledges, he says, getting us to 6.5 percent unemployment is almost certainly not going to happen until the end of 2015, if that. Their own target for the coming year, the Fed’s own target for the coming year for unemployment, is between 7.3 and 7.7 percent, official unemployment. Today the unemployment rate is officially 7.7 percent. So the Fed itself is suggesting they don’t really think that we are going to get any significant gains in unemployment over the full 12 months, even with a interest rate that they’re setting at zero percent.

Now, what does this all mean? Bernanke is essentially acknowledging that he doesn’t have the tools. As he himself said in his statement, if I had a magic wand and could reduce unemployment to 5 percent, I would, I’d wave the wand. He’s saying he doesn’t have the tools.

Liquidity moves markets!

Now, why doesn’t he have the tools? The Fed, as we’ve discussed in earlier shows, the Fed has set the interest rate that they target, the federal funds rate, at zero, at zero. Banks get money for free. They can get as much as they want for free. And that’s supposed to go out into the economy, stimulate businesses to expand and hire workers.

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Latest News and Opinion

In case you missed it, The Washington Post’s criminally careless publishing of “fake news” about purported “Russian propaganda” created a backlash–and the Post’s attorney-approved bleating to sidestep responsibility for publishing “fake news” failed to calm the waters.

More of the same didn’t cut it for the American middle class this November, … and so the Obama voters went to the Republicans, as Hillary Clinton failed to impress onto the middle class any sort of vision they can relate to.Per Pew Research, out of 5…

It was nearly 20 years ago to the day that Alan Greenspan delivered his famous “irrational exuberance” speech. Little did he know how far it could go. Even less has his pernicious legacy been accorded the condemnation it so richly deserves.

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